Hotel Insurance Explained

Obtaining a hotel insurance quote is one of the main considerations before you start running your hotel business. Insurance for a hotel should be one of your most important business considerations to ensure adequate protection for your livelihood. If you are running a hotel of what ever size or description, you will certainly need a range of insurance policies to protect your business. The good news is that, most of these covers can now be purchased under a 'Hoteliers Combined' insurance contract. A modern hotel insurance policy will cover various different contingencies and will be arranged in different sections. The insurer issuing the policy will require a certain number of minimum sections to be purchased. Whilst many of these sections will be a matter of personal choice and budget, some will be compulsory to enable you to trade legally. If you have any employees, you will need employers liability insurance as this is a requirement of the Employers Liability Protection Act 1969. If you have purchased the building of your hotel on a mortgage or other type of bank loan, then the lender will want you to effect building insurance, with their name mention on the policy, thus protecting their interest. When starting any new business, cash flow is a major consideration and there may be a tendency to cut down on the number of sections of the hotel Insurance policy taken out to make it as cheap as possible.

However, if you are to fully protect your business, it's worth while taking a moment to fully understand each section of the policy and what it has to offer in terms of protection for your hotel business. As mention above, most policies are now arranged on a package basis as is the norm with business insurance polices, this makes them easier to administer for both the policyholder and the insurer, if you are looking for a cheap hotel insurance policy with a wide variety of covers, buying on this basis could help to keep the cost down. Briefly, the sections covered on a hotels insurance policy, will include the following:-
 
1) Hotels Insurance for Buildings 
2) Stock, Trade Contents & Tenants Improvements
3) Business Interruption (Loss of Income)
4) Loss of Money